Cotton Rallied Sharply
Cocoa’s demand issues are not fully extinguished yet, but global demand appears to be more resilient than expected through coronavirus restrictions. With bullish supply developments providing added support, cocoa can extend its upside breakout move.
Coffee still has a very large (and likely record high) Brazilian crop to contend with, but bullish supply news helped to put some brakes on its downside breakout. In order to sustain upside momentum, coffee will need to receive positive news from the demand side of the market.
July cotton rallied sharply yesterday, reversing last week’s selloff and trading to its highest level since March 16. Dry weather in US growing areas, particularly Texas, is raising some concern about their crop.
Sugar continues to hold its ground within its recent consolidation. Even so, bearish supply continues to weigh on sugar prices and leaves them vulnerable to a near-term pullback.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.